Don Vialoux is a research analyst at Horizons Investment Management. His focus is on technical analysis and seasonal investing.
Horizons S&P 500 Index ETF
The period of seasonal strength in North American equity markets from Oct. 28 to May 5 is rapidly approaching. Recent weakness primarily in U.S. equity indices is setting the stage for the annual opportunity to return to equity investment at better prices.
Select Sector SPDR-Technology
The period of seasonal strength in the sector is from Oct. 9 to Jan. 17 has just arrived. Recent weakness in the sector is setting the stage. On the charts, the sector is short term oversold and due for a recovery. The sector benefits from purchases of electronic products by consumers and businesses prior to the Christmas season
iShares Trust Shares DJ Transportation Average Index Fund
The period of seasonal strength in the sector is from Oct. 10 to Nov. 13. On the charts, the Dow Jones transportation average is expected shortly to break above its all-time high at 6,755. Demand for transportation services is stronger prior to the Christmas season.
Past Picks: September 28, 2012
SPDR DJIA ETF
Total return: +16.04 per cent
PowerShares QQQ Trust
Total return: +17.04 per cent
Horizons S&P/TSX 60 ETF * Stock Split, 1 for 2. 9/9/13
Total return: +9.12 per cent
Total return average: +14.07 per cent
North American equity market continued to follow their traditional seasonal pattern: strength from the end of October to the beginning of May and above-average volatility with limited return during the beginning of May to end of October period. Preferred strategy is to “Buy when it snows (usually for the first time around the end of October) and to Sell when it goes (finally near the end of April.” In the short term, equity markets are obsessed with political developments in Washington. When the rhetoric is cooled, equity markets are expected to move higher.